What Is the Difference Between an "As Is Price" and an "After Repair Price" for My Las Vegas or Henderson Home?

By Mike Tchobanian, Broker and Owner, Vegas Capital Realty | The Tchobanian Group

Call Mike at 702-530-5844

Three numbers, not one

When I walk a house in Henderson or Las Vegas that needs work, I give the seller more than one number.

After repair price. What the house sells for once it is fixed up and brought to the standard buyers expect. This is full market value, based on what similar homes in good condition have sold for and what is on the market now.

As is price. What the house sells for today on the open market, in its current condition, with you doing no repairs. Regular buyers with a loan can still buy a house as is if it is livable and the lender accepts it. They just pay less for the work they will have to do.

Cash investor offer. What an investor or flipper will pay. They start from the after repair value and subtract the cost of the work, their holding costs, their profit, and their risk. This is usually the lowest of the three, and it is the number the "we buy houses" companies are quoting you.

A lot of sellers think their only two choices are to remodel or to take an investor's offer. There is a third choice: list it as is to the whole market and let buyers price the work themselves.

All three numbers move with the market. In a seller's market the gap is smaller because buyers will take on work to get a house. When buyers have more choices, like now, they expect a bigger discount for anything that is not ready.

How far apart the numbers are

It depends on how bad the condition is.

Needs everything. Kitchen, bathrooms, flooring, paint, fixtures, the works. This is the worst case, and the investor's discount is biggest here. As a hypothetical example, a house worth $650,000 fixed up might draw a cash offer somewhere around $390,000, roughly 60 cents on the dollar, depending on the market and the investor. The repairs usually cost well below that $260,000 gap, which is why fixing it usually puts more money in the seller's pocket, if the seller has the time.

Needs paint and floors. Nowhere near that gap. A house that is clean and solid but needs cosmetic work sells much closer to full value, and the work often pays for itself. Here is the math on that house, with example figures:

	Sell as is	Fix it first
Sale price	$590,000	$650,000
Repairs	$0	$40,000
Extra mortgage, utilities and taxes while the work is done	$0	$5,000
Before commission and closing costs	$590,000	$605,000

In this example, fixing it first leaves about $15,000 more before commission and closing costs, and it takes another six to eight weeks. Change the numbers and the answer can flip. If the as is price were $620,000, selling as is would win. That is why I run it house by house, and why I give you the numbers in writing instead of a rule of thumb.

Clean but outdated. This is the one I see every day, and it deserves its own section.

The house that is in great shape but outdated

Here is the hard conversation. The house is spotless. The owner has taken care of it for 20 years. Nothing is broken. But the kitchen, the bathrooms, and the finishes are from 2005.

The buyers paying the most today are looking for the latest remodeled finishes and design. A well kept 2005 kitchen does not get 2026 top dollar, no matter how clean it is. That will make a difference in the price.

Sometimes the right move on this house is to sell it the way it is, for a little less, and accept that the styling is not going to get the highest price. Sometimes it is worth updating the few things buyers notice most. I will tell you which, house by house.

What I ask every seller to do is see the house the way a buyer sees it. A lot of homeowners, especially when they still live in the house, are emotionally attached to it. They remember it as the gem it was when they bought it. They do not see that it is outdated now. I understand that. But the buyer does not have those memories, and the buyer sets the price.

How to decide which option puts more money in your pocket

Once you have the numbers, the decision is yours:

• If the gap is big and you have the time, fix it and sell to the whole market. Here is how the repairs can be handled, including getting the contractor paid at closing.
• If you need to sell and move on, list it as is to the whole market and put it behind you. That is a real choice, and I respect it. Even then, an open market as is sale usually beats a single investor's offer.
• If the house is clean but outdated, we talk about what is worth updating and what is not.

More on how to decide between selling as is and fixing it up first.

Frequently asked questions

What is an as is price?
What your house sells for today on the open market in its current condition, with you doing no repairs. It is not the same as a cash investor's offer, which is usually lower because the investor also builds in their profit and risk.

What is an after repair price?
What your house sells for on the open market once it is brought to the condition today's buyers expect. This is full market value.

How much less do I get selling my Las Vegas or Henderson house as is?
It depends on condition and the market. A house that needs a complete remodel draws the deepest investor discounts. A house that only needs cosmetic work sells as is much closer to full value, and listing it to the whole market usually beats a single investor's offer.

My house is clean and well kept but outdated. Will I still get top dollar?
Usually not. The buyers who pay the most want updated finishes. A well kept but dated house sells for less than a remodeled one, even when nothing is wrong with it.

Want your numbers for your Henderson or Las Vegas house?

Call me. I will walk the house and give you the as is price and the after repair price in writing, with the sold homes behind each one, and I will tell you what an investor offer would likely look like so you can compare all three.

Call Mike at 702-530-5844

Or email mike@vegascapital.com.

The figures above are examples to show how the math works, not an appraisal of any home. This article provides general real estate information, not legal or financial advice.